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BRIEF-Redcentric plc reports misstated accounting balances, sacks CFO
November 7, 2016 / 7:07 AM / a year ago

BRIEF-Redcentric plc reports misstated accounting balances, sacks CFO

Nov 7 (Reuters) - Redcentric Plc

* Redcentric plc (aim:rcn), a leading uk it managed services provider, has discovered misstated accounting balances in group’s balance sheet.

* Board has commenced a forensic review of group’s current and historic balance sheets which will delay publication of its interim results (originally scheduled for 14 november).

* Work to date has identified that audited accounts for previous years are likely to need to be restated, resulting in some write down in historic profits.

* Board believes from information available to date that impact of correcting these cumulative historic accounting misstatements would result in a need to reduce net assets by at least £10 million.

* Net debt guidance announced in pre-close trading update is now believed to be unreliable. Board now believes net debt at half year was approximately £30 million.

* Board also believes that underlying net debt position at 31 march 2016 was materially higher than as reported and thus business has reduced its underlying net debt in six months to 30 september 2016.

* Company has served notice on its cfo, tim coleman, and placed him on garden leave with immediate effect. Board anticipates making an external interim appointment of a replacement cfo. Source text for Eikon: Further company coverage: (Reporting By Sinead Cruise)

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